Vertical and shared Leadership in startups

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Transcript of Vertical and shared Leadership in startups

Kalle Bremer, Jennifer Jochinger, Alison Keller, Jenny Loennberg, Eline Van Ruijssevelt Vertical and shared leadership in Startups ? What is a start-up? Average age: 5.5 years A business or an undertaking that has recently begun operation. Often being high growth and technology-oriented companies. More than of all start-ups Importance of good leadership in a start-up. Do not follow where the path may lead. Go instead where there is no path and leave a trail. Harold R. McAlindon Difference between vertical and shared leadership Can you imagine a context where vertical leadership would be more effective in the life of a start up? Different leadership techniques in different stages Definitions Difference Vertical Leadership Shared leadership •Hierarchical top down leadership

•One person has power over the group. •Leadership distributed through all members of the team •Empowering individuals to take leadership positions in their areas of expertise Vertical leadership Shared leadership Team process where leadership is carried out as a whole Influence on team processes Dependent upon wisdom of individual leader Collective Knowledge Top-down influence process Collaborative process All power to one leader Power for most qualified individuals =The leader-ship =The leading-ship Makes "strong" climates ? shared leadershipVertical leadership Potential Path Pre-formation stage Crisis & large scale change ? Vertical and shared leadership in Startups: Bibliography (Kerr & Nanda, 2009) 70% fail in the first 10 years - motivates others - determines company culture - guides through times of crisis - attracts talent - improves productivity Good Leadership: - creates a vision & strategy ? Which leadership style works better in a start-up and why? Who is the real brain behind the company? Looking at the real world... Hypothesis: Hypothesis 1: partly supported

Hypothesis 2: supported

Hypothesis 3: supported, found support for both vertical and shared to bring more variance to the firm but shared showed higher variance Results: Sample 1: 66 of Americas fastest growing start-ups Sample 2: 154 teams randomly picked from Dun & Bradstreet H1. Vertical leadership in start-ups will be positively related to performance and higher growth rate.

H2. Shared leadership in start-ups will be positively related to performance and higher growth rate

H3. Shared leadership in start-ups will bring more variance to the firm compared to vertical leadership